Bybit review: Easiest to use exchange? – Real test
(5 / 5)
Finding a cryptocurrency exchange that has an excellent interface and boasts competitive pricing isn’t tricky. However, what makes Bybit different from other exchanges is that it offers up to 100x leverage on trades and is one of the handfuls of exchanges that have never been hacked.
But what is the company’s background? Does it abide by regulations? Does it respect user privacy and keep data secure? And perhaps most importantly, is the right exchange for you? We discuss answers to all those questions and more in this in-depth Bybit review to help you find out.
What is Bybit? – Background of the exchange
Bybit is a cryptocurrency exchange that was founded in 2018 by Ben Zhou. It is one of the newer crypto exchanges, but it already has over a million users.
Ben Zhou ran a forex exchange for eight years, and the other team members boast work experience from companies like Morgan Stanley and Tencent. The founding team comprises early blockchain adopters, former investment bankers, and Forex experts. It’s not difficult to see the reason behind Bybit’s success relatively quicker rise in popularity.
The exchange is registered in the British Virgin Islands but is headquartered in Singapore. Bybit also has offices in Hong Kong and Taiwan. The company emphasizes leverage trading, providing users with up to 100x leverage on Bitcoin and Ethereum. Users also get access to perpetual contracts that follow the spot price of the cryptocurrency and not the assets.
(Risk Warning: Your capital can be at risk)
Who it is for – Bybit offers:
Some of the many products the platform offers include BTC/USDT, ETH/USDT, LTC/USDT, XTZ/USDT, and LINK/USDT perpetual contracts. But you don’t need Tether to buy crypto on the exchange since BTC/USD, ETH/USD, XRP/USD, EOS/USD pairs are also available.
Bybit does not offer a lot of altcoins to buy. However, it does have an impressive set of features, some of the best of which are:
- Smart Trading System: It enables you to set up take profit/stop loss at entry. The platform also offers strategy alerts and allows you to adjust your orders in one click.
- Impressive Market Depth: Every trade you make is executed with a minimal impact on price.
- Outstanding Matching Engine: The matching engine can execute up to 100,000 transactions per second. You never have to worry about overloads with Bybit.
- State-Of-The-Art Pricing System: The dual-price mechanism ensures you never encounter unfair liquidations.
- Robust API: The powerful API pushes data every 20ms, allowing you to conduct high-frequency trading effortlessly.
- 99% Uptime: The grey release feature, coupled with the on-the-fly release of hot patches ensures zero downtime.
- Industry-Leading Customer Support: The customer support team is on standby 24/7 and converses in several languages. You can get your queries answered at any time.
- Several Order Types: In addition to the market, limit, and conditional orders, the company enables you to place USDT and inverse perpetual contracts. You can also place good-till-canceled, immediate-or-cancel, and fill or kill orders.
- On top of that, you can also set how your order is executed. You can select the “Post Only” option for Limit and Conditional Orders and make Reduce Only limit orders. Close on Trigger parameter is available for conditional orders, making Bybit perfect for an experienced trader.
- Position Calculator: You can calculate P/L and RoI target levels with ease using the integrated position calculator. You can also use it to determine your liquidation levels.
Bybit is available in most regions – including North America, Europe, South Korea, and Russia. The entire exchange has been translated into English, Chinese, Russian, Japanese, and Korean for easy use.
The interface is easy to use but offers a lot of advanced functionality, and the By bit mobile apps make it easy for you to trade on the move. It’s the perfect platform for both beginners and experienced crypto traders. However, if you’re in the US, you won’t be able to use it.
How safe is Bybit? – Regulation and safety of customer funds
The exchange enables you to trade about half a dozen cryptocurrencies. It has over a million users and boasts an estimated trading volume of $140 million. It is essential to learn what measures the company takes to keep its users and their data safe before deciding to use it.
Bybit understands the criticality of excellent security for users – 100% of Bybit user’s funds are stored in multi-signature wallets, ensuring maximum security.
Only a small part of the company’s holdings is in hot wallets. Most of the cryptocurrencies are put away in air-gapped cold storage. Since the drives are not connected to the internet and are stored at secure locations, they are impossible to hack.
The website makes use of Secure Socket Layer technology, helping you protect yourself from phishing attacks. Also, Bybit has a two-factor authentication feature, and every customer must enable it before withdrawing from their account. It’s also worth mentioning that the company’s trading system is super reliable – it has never experienced an overload since inception. Furthermore, the advanced Mark and Index system guarantee reliable rates and high availability.
While mutual insurance isn’t a security measure, it is an indispensable risk management tool that protects you from inadvertent market fluctuations. Bybit protects you from unseen losses and also ensures your profits don’t decline too much.
Additionally, you can lock in profitable positions to reduce the fear of fluctuations.
Bybit Insurance Fund
The company offers an insurance fund, which acts as a reserve pool that protects traders using Bybit from negative equity and losses. It comes into play when you get liquidated below the bankruptcy price, or in other words, the price at which your initial margin has depleted completely.
But that’s not even the most impressive part.
The insurance will provide cover until an auto-deleveraging mechanism takes over. The insurance fund replenishes the difference between the bankruptcy price and the liquidation price.
- Manually settle during the insured period.
- Ask for a payoff right after liquidation.
- Wait till the expiration of the mutual insurance for automatic credit.
Hacking attempts and security slip-ups
One of the most impressive things about Bybit is that it has never been hacked. The same cannot be said about Coinbase, Kraken, and BitMEX, other popular crypto exchanges that take similar security measures on paper.
But that being said, there is no such thing as a risk-free crypto exchange. When you deposit your funds, in this case, in the form of Bitcoin, you are effectively trusting your money with Bybit.
However, the fact that the majority of the cryptocurrencies are stored in cold storage makes the exchange reliable. The company also assures customers that all users will be fully compensated for their losses in the event of a hack.
Most crypto margin exchanges do not require any documents for account creation. Bybit is one of these exchanges. While this makes signing up easy, it also means that Bybit does not comply with the US’s KYC laws. Consequently, it does not possess the famous BitLicense, which is considered a mark of safety by many crypto traders.
But this does not mean Bybit isn’t safe to use. The company confirmed that it is actively seeking to license. It has never been hacked and does not have a history of use for illicit transactions. That being said, it isn’t regulated in any country, inherently making it less trustworthy than an exchange like Binance.
Trading conditions – What can Bybit offer?
Since the company does not currently comply with any KYC laws and remains unregulated, there’s not much you need to trade using Bybit. You only need an email address and consent that you are at least 18 years old. Registering takes 30 seconds, and you can start trading crypto immediately after signing up.
Bybit fees and costs:
Bybit works on the taker and maker system. The company charges takers 0.075% per order. While the fee is difficult to compare to the global industry average, the fee is fair.
On the other hand, makers have a -0.025% fee. In other words, every maker gets paid to trade.
For instance, if you’re a maker in a trade and you purchase $1000 worth of cryptocurrency. You will only need to pay $997.50. It may not seem like much of a rebate if you’re a newbie, but it is a competitive trait. Compared to other exchanges, Bybit’s fee structure is a lot less complicated.
Bybit limits and liquidation
Some exchanges have daily withdrawal limits and require verification to increase the limits. However, Bybit neither requires verification nor has a withdrawal limit.
But the anonymous exchange only allows you to withdraw funds three times a day at specific times. Most other margin trading exchanges, including BitMEX, only allow you to withdraw your funds once a day. The withdrawal timings are 08:00, 16:00, 24:00 UTC – once every eight hours. You can set up your withdrawal per usual, but it will be pending until confirmed by Bybit and will be processed only at the specified times.
This means if you need to withdraw your funds, there is a chance you will need to wait for eight hours for your funds to arrive. It is also important to note that there is a 30-minute rule. If you’ve submitted a withdrawal request 30 minutes before withdrawal time, you will need to wait till the next withdrawal time for your request to be processed.
In other words, if you request a withdrawal at 15:30, you will need to wait till 24:00 for it to complete.
(Risk Warning: Your capital can be at risk)
Test of The Bybit Trading Platform
The first thing you will notice when you log into Bybit is how neat the interface is. The buttons and menus are perfectly placed, and while the interface has some advanced features, it is easy on the eyes.
See the screenshot of the trading platform below:
The bar on the top is static and makes navigating the website easy. You can check your assets, read guides and FAQs, and navigate the trading section using the top bar.
Seasoned traders will appreciate the TradingView charts – they are smooth, intuitive, fast, and neat. The advanced tools and indicators incorporated into the chart give you an edge over other traders and enable you to maximize profits while minimizing risk.
Besides giving you the ability to draw trend lines and add indicators, you will also be able to adjust the time frame and add chart patterns to the chart.
The extensive selection of chart indicators is certainly the interface’s best feature. You can add everything from Simple Moving Averages to Bollinger Bands and Stochastics to the chart.
If you rely on technical analysis to trade, there isn’t a better exchange to go for than Bybit. The feature-loaded interface will satisfy your needs perfectly.
Market Data Analytics
Besides the cool charting interface, Bybit gives you access to an “Advanced Data” section. It comprises several useful charts and graphics that can enhance your trading strategies.
Market analysis is an integral part of cryptocurrency trading. You can pull up a few of these charts to conduct analysis, download the data as an image, or even as a CSV file – whatever makes it easy for you.
Data Analysis Tools
Bybit gives you access to a handful of nifty data analysis tools:
- Monthly Price Range: The section gives you an overview of the monthly highs and lows and enables you to observe the traded asset’s range.
- Price Moving Averages: It shows you the cryptocurrency’s price and also several moving average indicators over different time frames.
- BTC Daily Realised Volatility: The tool reports the actual volatility of a cryptocurrency over a period of your choosing.
- Rolling Volatility: The rolling volatility indicates the realized volatility of a currency over 30 days. The realized volatility is compared to the average, giving you a sense of how much the price varied over time.
How to trade with Bybit?
Trading with Bybit is straightforward.
Step 1: Make a deposit
You must deposit Bitcoin into your Bybit wallet – you can find the address from the homepage with ease.
Alternatively, you can use the company’s new fiat gateway to buy Bitcoin and use it to trade.
Step 2: Start trading
After you’ve deposited funds to your Bybit wallet, you must navigate to the trading section. You must the type of order you want to make and the method of execution. Post selecting the details of the position, you must enter the desired metrics, or in other words, how much of the currency you want to buy or sell.
And that’s it; you’re all set. After reviewing your order, click on the “Buy/Long” or “Sell/Short” button.
See the order mask below:
Your order will appear in the designated space on the interface, allowing you to monitor its performance and take further action.
Bybit Trading Bot
The company partnered with 3Commas to provide its users with a ByBit trading bot. You can use it to buy or sell your cryptocurrencies as you program them. It enables you to copy trading tactics that more experienced traders use. Alternatively, you can choose from simple, short, composite, and composite short bots to do the trading for you.
However, the trading bot does not come enabled by default. You must link your Bybit account to the 3Commas platform using your API keys before you can use it.
How to open an account with Bybit?
Creating an account with Bybit takes 30 seconds. See the registration form below:
All you need to do is navigate to the Bybit website and enter your email address and set a password on the section on the right. You can also use a mobile number instead of an email address to set up your account.
A verification code will arrive on your email or phone number within five minutes, which you must enter on the website to register your account. And that’s it; you can then trade on Bybit without any restrictions. No verification or KYC process is required to use Bybit – it is a 100% anonymous trading service.
(Risk Warning: Your capital can be at risk)
Does Bybit offer demo accounts?
If you’re a new crypto trader, Bybit is worth checking out. The exchange gives all of its users access to an easy-to-use test net. You can try out the exchange and test out trading strategies without using real funds.
Since there are no risks involved, you can simply create an account and start playing with the interface to get used to it. Once you’re comfortable and know what strategies you want to use, you can deposit Bitcoin and apply them to make profits.
To use the test net, though, you must get demo coins from the test net faucet. When using the test net, you will get a minimal amount of Bitcoin – the release rate is 0.01 BTC per hour.
Is there A Negative Balance Protection on Bybit?
Yes, the exchange does have Negative Balance Protection. The insurance fund and the auto-deleveraging mechanism we discussed earlier in the post protect traders from debt. You will never owe the company anything – once your account’s balance reaches zero, the trade will end.
Bybit privacy for user-data
However, the exchange protects all of your data by taking the following measures:
- The directories and databases are password protected.
- The website is encrypted with SSL technology.
- PCI Scanning is used to protect the serves from hackers.
On top of all that, the company assures users that the details transmitted via SSL technology are not freely accessible. Only authorized personnel can access your data, and they are required to regard the information as highly confidential.
You can always opt out from receiving marketing emails and text messages from the company. There are three ways to opt-out:
- Log into your account and update your profile preferences.
- Click on the “unsubscribe” button at the bottom of a marketing email.
- Contact customer support at [email protected].
Third parties will not use your data after you opt out. However, Bybit will still have your data stored on its servers.
Also, Bybit never asks for any financial information in any of its emails or texts. If you receive a suspicious request, do not provide your information and report the event to the customer support team.
Bybit deposits and withdrawals
Previously, Bybit did not accept fiat currencies as deposits, meaning users could not use a credit or debit card or even a bank transfer to buy cryptocurrencies.
But as of January 2021, Bybit’s fiat gateway is operational, enabling you to buy Bitcoin, Ethereum, and USDT using fiat currencies. However, the platform still functions on Bitcoin. If you already have a Bitcoin wallet with some funds, you can transfer them to your Bybit account with ease.
There are no deposit fees; however, you must pay the miners fee per usual for the deposit. While withdrawals are not free, the fee is very low at 0.0005 BTC. Other exchanges charge between 0.0008 – 0.0009 BTC, making Bybit one of the most affordable exchanges to use.
Support and service
The exchange offers multilingual customer support 24 hours a day – you can get support any time using the live chat function on the website. It is available in seven languages. Alternatively, you can get support by emailing them at [email protected]. If you have a technical query, you can reach out to the company at [email protected].
One of the best things about the exchange is that they also have an active Telegram channel. You can get support on the Telegram app when you’re on the move. If you think your query may have been answered before, you can search through the extensive FAQ section.
Accepted countries and forbidden countries
Bybit is operational everywhere except:
- United States of America
- Québec (Canada)
- North Korea
Conclusion on our Bybit review: Professional crypto exchange
Bybit is secure, trustworthy, easy to use, and efficient, making it the ideal crypto exchange to trade with. It also gives you access to up to 100x leverage, allowing you to maximize profits when you know things will go your way.
Additionally, it is one of the few margin trading exchanges that allow you to buy crypto using fiat currencies. It doesn’t require KYC, either. The insurance funds secure your trades, and the fantastic customer support team is available to assist you 24/7.
All those features coupled with the competitive fees and availability of a trading bot make it an exchange that’s hard not to recommend.
Advantages of Bybit:
- No verification required
- High margin trading
- Leverage up to 1:100
- Professional trading platform
- High security
- Competitive trading fees
- Mobile app
Bybit is the perfect cryptocurrency exchange for margin traders. It offers good conditions and very fast account opening. (5 / 5)
(Risk Warning: Your capital can be at risk)